Now that law enforcement is zeroed in on mortgage fraud in the region it’ll be interesting to see what happens. Will banks and brokers tighten credit? Will the local real estate market take a hit?
Also note that this emphasis comes just as long-term rates appear to be nudging upward, itself a credit-tightening signal. Bonus observation: It is oil-driven inflation fears that boost long-term rates, not the Fed hiking short-term rates.
Shhh, don’t tell the Fed. The central bank likes to think it’s in charge of the country.
